New details of Fyre Fest founder’s financial mismanagement arise

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Just when it seemed that Billy McFarland’s failed Fyre Festival was finally extinguished — McFarland was charged with fraud — and required to place the LLC under involuntary bankruptcy, the organization of yet another McFarland enterprise has come into question.

Seemingly the next McFarland-run company set to smolder is Magnises, a “members-only concierge service.” Founded prior to Fyre Festival LLC, Magnises marketed discounted concerts and event tickets to its members, with the tickets offered purchased from third-party platforms like StubHub, and then sold to members at what is being called a “significant” loss. McFarland is said to have frequently advertised and sold tickets to events that he did not have tickets to, leading McFarland to either cancel the ticket orders made via Magnises, or to supply tickets acquired through a third-party distributor. McFarland frequently bought the tickets on the same day of the scheduled performance.

McFarland orchestrated the ticket purchase and resale system at Magnises via the use of a Fyre Media corporate credit card, charging more than $1 million in tickets in a four-month period. At least nine other employees had possession of a Fyre Media corporate card, including Ja Rule ad Grant Margolin, Fyre’s marketing director, but the only unrelated charges are those that appear on McFarland’s card. The overlap in credit use is problematic as each company, Magnises and Fyre Media, had different aims; Magnises emerged as a ticket distributing service, whereas Fyre Media was intended to be an app for people to book artists for private events. Charges to a Fyre Media credit card for Magnises activity represent those from an entirely different company.

The new financial developments will hinder McFarland’s case, as the company head will have to now answer to officials regarding the ticket scheme that served as the foundation for Magnises.

H/T: Complex

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Fyre Festival Organizer Arrested for Wire Fraud Two Months After Disaster

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The fall out from Fyre Festival continues to unfold.

Fyre Festival founder arrested for wire fraud

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Billy McFarland has become one of the most infamous names on 2017 entertainment headlines after botching Fyre Festival to almost comically epic proportions. It became evident very quickly how incompetent he’d been at budgeting and organizing festivals when guests who’d spent upwards of $12,000 arrived to find cafeteria food, barren disaster relief tents, and general chaos at the grounds.

Well-off and upset millennials immediately began piecing together class action lawsuits after the madness, however these lawsuits have now become the least of McFarland’s miseries as a brand new scandal has erupted.

The tech financier fell under arrest by federal agents on Friday, June 30 under one charge of wire fraud. According to prosecutors, he’d lied on important documents and inflated his company’s net worth in order to seduce investors. Communications between McFarland and two investor’s who’d poured around $1.2 million into Fyre Media LLC, the festival’s subsidiary company show repeated cases of incorrect information; one in particular showed McFarland claiming his company had earned millions the year before, when in reality it had only netted about $57,000.

McFarland’s arrest came after investigations by the FBI. He’s currently looking at 20 years in prison if found guilty. While Ja Rule has also been implicated in a number of complaints and cases files, he has yet to be arrested.

H/T: New York Times

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This Festival Marred Deep in Controversy is Now Also on the F.B.I.?s ?FYRE?ing Line

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Almost a month down the line, the ‘Fyre’ is still raging with controversies galore!

Fyre Festival Organizers Reportedly Facing FBI Fraud Investigation

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THERE’S EVEN MORE BAD NEWS FOR JA RULE & HIS PARTNERS

Fyre Festival reportedly under investigation by FBI for fraud

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The New York Times reports the company behind Fyre Festival is under investigation by the FBI.

According to a source close to the matter, Billy McFarland’s Fyre Media is being investigated by the FBI for possible mail, wire and securities fraud. The investigation is being overseen by “a prosecutor assigned to the complex frauds and cybercrime unit.”

Fyre Festival was originally suppose to take place on a private island in the Bahamas at the end of April, and was promoted by celebrities via Instagram as one of the most coveted music festivals of the summer. However, the event was cancelled after attendees reported “refugee camp conditions” upon arrival.

The disaster of an event has left many attendees out of pocket but has been even worse for local businesses and residents. In a leaked call, Fyre Media told staff they would not be getting paid, but were welcome “to stay and help out”.

As the Times reports, local restaurant owners, event coordinators, and carpenters are still owed hundreds of thousands of dollars from the festival. One man, a local carpenter, says he was asked to work 18-hour days to build housing because organizers were in a rush to complete the venue before attendees arrived. He said he hasn’t been paid and told the Times his lights and water have been shut off because he couldn’t afford the bills. MaryAnn Rolle, a local restaurant owner, says Fyre still owes her $134,000 from the festival for providing food.

Much of the remaining equipment was rented from other companies, both locally and in the US. Bahamian authorities are holding some of the rented equipment because Fyre still owes the government more than $300,000. Some business owners are incurring much greater losses because they have less equipment to rent. One Miami company that furnished equipment estimates $10 million in unpaid fees and business lost.

What started off as a highly anticipated event has turned into a highly damaging situation for local business owners and residents living in the area. We will undoubtedly see more of the story unravel through FBI involvement within the next coming weeks.

Via: The New York Times

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WayHome Offers Free Entry to Fyre & Pemberton Ticketholders!

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WayHome Music Festival is lending a hand to desperate music fans

Wayhome Music Festival offers Fyre Festival ticket-holders free tickets

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A rare positive has arisen from  the never-ending saga of the disastrous Fyre Festival as the Canadian-based Wayhome Music Festival has decided to lend a helping-hand to the distraught, trust-fund occupying attendees who suffered through 48 hours of rationed food portions while stranded on the Bahamian island until outgoing flights resumed.

Embracing the stereotypical Canadian way of life, the Wayhome committee announced their incredible gesture of kindness by stating that “all 2017 Fyre Festival ticket holders can redeem their ticket for a 2017 WayHome General Admission Ticket by sending a copy of their unique confirmed Fyre Festival ticket to the following address; ticketing@republiclive.com.”

Featuring major artists like Flume, Justice, Illenium, Louis the Child, Marshmello, and Porter Robinson, Wayhome welcomes their doors from July 28-30 to all members of the dance music community, even if they happen to be Fyre festival refugees.

UPDATE:

After the unsuspecting cancellation of Pemberton Music Festival, Wayhome has decided to extend their generosity to ticket-holders of the west-coast festival. Catching everyone by surprise after the uber late announcement of their 2017 lineup, the social downfall of the festival began when attendees caught word of the parent company’s bankruptcy, and statement regarding “no automatic refunds” for ticket holders.

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Fyre Festival Just Announced Two of the Biggest Groups in EDM

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Fyre Festival is the latest destination based, life changing experience to hit the map. The festival which will take place over two weeks, the last in April and first in May, will be held at a private island once owned by Pablo Escobar in Exumas, Bahamas. We reported last week that the first headliner to

The post Fyre Festival Just Announced Two of the Biggest Groups in EDM appeared first on EDM Sauce.

First Headliner Announced for Mysterious Island Festival

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We reported a few weeks ago about a mysterious festival that was popping up all over the social media feeds of influencers in the world of food, fashion, music and the arts. It was of course Fyre Festival – the experience that is already being lauded as the cultural event of the decade. Check out

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